Singapore taxability on overseas Director’s Fees received

Mar 25

Singapore taxability on overseas Director’s Fees received

This article answers the question:

Do Singapore residents need to declare or pay taxes in Singapore on Director’s Fees received from an overseas company.

Director’s Fees are defined as remuneration received strictly for occupying the office of Director. This is distinct from other forms of remuneration a Director may receive such as Salary. Director’s Fees are generally considered sourced in the country in which the company is incorporated. Therefore based on Singapore’s territorial taxation system such Director’s Fees received from an overseas company, which is considered overseas income is not within the scope of Singapore’s taxation.

  • Does receiving such Director’s Fees in a Singapore bank account make them taxable in Singapore?

No; the mere fact that overseas Director’s Fees are received in a Singapore bank account does not make them liable to tax in Singapore. Such income is considered sourced overseas, and is not subject to Singapore’s taxation, therefore no declaration of such income is required in Singapore.

  • Holders of dual roles, both as a Director of an overseas company, and employee of a Singapore branch or subsidiary of the same overseas parent. 

As long as the Director’s Fees received is purely in the capacity as board director of a company which is a non-resident of Singapore; and not attributable to attendance of board meetings in Singapore, such Director’s Fees is still considered sourced overseas.

 

Cautionary note: It is always prudent to refer to the Income Tax Act for definitive answers. A Singapore tax advisor such as Futurebooks will be able to interpret the Act and advise on your specific scenario.